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The average firm in each industry must have an m/b ratio that is equal to 1.0. true or false? a. true b. false

The average firm in each industry must have an m/b ratio that is equal to 1.0. true or false? a. true b. false
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3 votes
The average firm in each industry must have an m/b ratio that is equal to 1.0. true or false?

a. true
b. false

asked
User Morteza Adi
by
7.9k points

1 Answer

6 votes
The M/B ratio is the ratio between the market value and the book value. It is one indicator used to measure the worth
It is false that the average firm in each industry must have an M/B ratio that is equal to 1.0
answered
User Ssank
by
7.9k points
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